Goldman Sachs Flags Amazon as Top Pick on AWS Surge

Goldman Sachs placed Amazon on its Conviction List, highlighting the stock’s attractive risk-reward profile. Analyst Eric Sheridan kept the Buy rating and $375 target, implying roughly 50% upside from levels near $250.

The move follows Amazon’s second-quarter 2026 results, where AWS revenue jumped 37% to $42.2 billion — the fastest pace in 18 quarters — and operating profit reached $16.6 billion. Overall company revenue rose 20% to $200.6 billion while operating profit climbed to $27.5 billion.

Advertising contributed another strong line, delivering $19.8 billion, up 26%. Still, Goldman stresses that sustained momentum will depend on whether heavy infrastructure spending — $53.1 billion in capex for the quarter — starts translating into higher cloud utilization and profits rather than just bigger bills.

The bank’s price target sits above the Street consensus of $331.82. Amazon guided for 9–12% revenue growth in the third quarter.

Based on information from https://cryptonews.net